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1/3/2008 4:25:48 PM

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Iphone flops despite hype

Iphone flops despite hype - Mobile news

Late surge not enough to rescue flagging iPhone sales

O2 enjoyed a major spike in iPhone sales in the week before Christmas, after disappointing sales from the much-hyped 9 November launch.

Most stores are believed to have missed iPhone targets by some distance, with a typical-sized O2 store selling just one iPhone per week. However, that appeared to change in the final seven days, with O2 staff reporting a big upturn, with many stores selling one per day, and even more in large city centre stores.

One O2 source said: ‘It seemed like people started buying them even if they were already in a contract, especially as they realised they wouldn’t start being billed until they registered online.’

O2 staff said that despite the moderate interest there was a much lower percentage of returns on the iPhone than had been anticipated.

HOW DO YOU THINK THE iPHONE IS DOING?  

Carphone staff were less bullish on iPhone sales, reporting plenty of interest in the device, but with a very low rate converting into sales, with the price tag being the main stumbling block.

One Carphone staffer said: ‘The iPhone was poor. We work in one of the bigger stores in our area and only sold one or two over the Christmas period. Our target last week was to sell 36 and we only sold one.’

A price cut is rumoured to be taking place in the coming months to bring the cost of the iPhone down from £270, or an improvement in the tariff to give more value than the 600 minutes and 500 texts for £45 currently offered.

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